FOREIGN INTELLIGENCE SURVEILANCE ACT OF 1978--CONFERENCE REPORT

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October 9, 1978
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Approved For Release 2005/11/23 : CIA7RDP80S01268A000500040003-2 October. 9, 1978 CONGRESSIONAL RECORD -SENATE S 17881 rected the U.S. Comptroller General to pre- pare auditing and reporting standards to help in formulating the terms of reference for a review and evaluation group, and peri- odically review audit report and related in- formation and report to Congress and the President. LACK OF TRAINING In a report issued in early June, Comp- troller General Elmer Staats found that the Operations Evaluations Department formed by the Bank conforms with neither the For- eign Assistance Act nor the standards he stressed. The staff is recruited from within the Bank, he declared, and "is not provided with guidance or training in basic evaluation techniques." The Department has been reviewing proj- ects completed since 1972, but no current ones. "The Director-General [ ho heads the Department] informed us tha{i the reviews focus on completed. projects wh ch were ap- proved five to seven years earl r and that Bank practices followed at that time may not be relevant to current pra tices. . . The Department's Annual Revs w of Proj- ect Performance Audit Results, dated Febru- ary 1918, states that it is based o findings regarding loans totaling $1.3 bills n for 70 projects. It explains that it doesn't, identify the projects because the Bank is aec 7 untable only to its "shareholders," its mem er gov- ernments. But U.S. Congressmen hag been unable to learn the identity of the pi' jects cited. Although the U.S. director of the ank got a report which identified the project he is precluded by Presidential Executive Or' er 1972, from making it available to membe of Congress. The dearth of useful information makes it virtually impossible to tell what the Bank is doing. It is known, however, that the U.S. has contributed $5.6 billion, not counting the sum voted recently by the House. And that, as Rep. Young points out, "doesn't even include the $7 billion in callable capi- tal which the Congress has appropriated for the World Bank. It is this 'callable capital,' i.e., the full faith and credit of the United States, which gives the World Bank so much financial stability." Without doubt, however, the Bank's staff has been highly successful in eliminating poverty at home. When Congress complained that Bauk salaries for U.S. employes were tax-free, the latter started paying taxes; the Bank simply raised their pay by the amount of taxes paid. McNamara's salary has been mentioned. The senior .vice president now grosses $106,950. The U.S. executive director gets $83,830. That compares with $66,000 ' for U.S. cabinet members and $57,000 for,' members of Congress. The Bank also makes loans to its staff members at below-market rates.. FLOODS RAVAGE SOUTHEAST ASIA ? Mr. KENNEDY. Mr. President, over the past few days confirmed reports have come from Southeast Asia telling of mas- sive flooding caused by typhoons and heavy rain, endangering the lives of mil- lions of people throughout the region. Officials in Thailand have launched an emergency flood relief program, and both Laos and Vietnam have appealed for international disaster assistance. According to reports from the field, confirmed by our Government and United Nations agencies, heavy rains and typhoon Lola have combined to produce the worst flooding in 35 years in part of Thailand, in vast areas of Vietnam, and in the lowland areas of I~oas. The Amer- ican Embassy in Bangkok has cabled that serious crop damage has been' re. ported in Thailand, and other reports describe some 21/2 million acres of crop- land are under water in Vietnam, with a loss of perhaps 2.8 million tons or rice. Mr. President, this natural calamity comes to an area of the world devastated by years of war, and still suffering from its dislocations and the movement of refugees. Food shortages were already critical in both Laos and Vietnam before this latest tragedy struck. And Thailand has been faced with the serious humani- tarian burden of Indochinese refugees, only now to confront relief needs among its own people. Although Thailand has not yet re- quested international assistance, both the governments of Vietnam and Laos have appealed to United States agencies for assistance. Mr. President, I would hope that the administration would study their request, and respond expeditiously and gener- ously to any United Nations appeal- especially an appeal from the United Nations Office for Disaster Relief (UNDRO) -for emergency assistance to Vietnam, Laos, or T'hailand.. The need is obviously there, and once reports are. confirmed as to specific relief needs, I hope our response will be forthcoming. Clearly, the law provides for such as- sistance to meet natural disasters where- ever they occur, "notwithstanding any other provision pf law." Once the inter- national disaster assistance account of the Foreign Assistance Act is funded when the appropriations bill is signed by The President, hopefully in the next few days, no legal obstacle should remain in- out' ability to respond to an international app 1 for disaster assistance in Viet- nam Laos. Mr. resident, I ask that the text of two prel5,s reports from the field, be printed 1 tthe RECORD. The repot follows: FFrom.the shington Post, Oct. 5, 19781 FLOODS RAVAGE S@UTHEAST ASIA; VIETNAM AND LAOS *PPEAL FOR AID BANGKOK.-Heavy- floods have ravaged wide areas of Thaila Laos, Cambodia and Vietnam, submerging lions of acres of rice paddy and driving milli s of families from their homes, according to eports here yes- day broadcast by the official Vietnam New~,4 suffers from a chronic shortage of fertilizer Agency. \and insecticides, spare parts for water pumps Unseasonally heavy rains generated by Nkid fuel to run them. Furthermore, refugees Typhoon Lola produced the worst flooding fie' ng Vietnam report that the elimination in 35 years in Vietnam, the spokesman re- of the free market for rice last March in ported, adding that 2.3 million acres of crops what "as South Vietnam has reduced the in- were submerged in North and South with a centive to grow rice for sale. Collectivization loss of ^2.8 million tons of rice, of southbr~n farms, which is proceeding grad- _ gency relief in the form of makeshift hous- Some ricela ing and food handouts, he said. der is lying f diate flood relief and set aside more money called away from border duties. Instead of to assist in recovery once the swollen rivers producing food, they must be fed. Fuel, subside. which could have been used for water More than 200,000 villagers have aban- pumps and tractors, has been diverted for doned their homes to escape flooding in military use. Thailand's northern, northeastern and cen- Vietnam announced its dire "Situation tral provinces and the official death count Monday when it took diplomats and repre- stands at 34, officials in Bangkok said. More than 300,000 acres of farmland were under water and some low-lying areas around Bangkok also were flooded. The government flew vaccine and other medicine to flood-stricken- areas in the northeastern province of Udorn after re- ports that cholera had broken out. Two deaths were attributed to cholera and nine other cases were confirmed, public health officials reported. In addition to the flooding, the Vietna- mese Foreign Ministry official said, nearly 900,000 acres of ricelands were destroyed by insects. An international official in Bangkok said the insects constituted a long-term problem in Vietnam because of a scarcity of pesticides and working spray equipment. Flooding was particularly devastating in the Mekong Delta, Vietnam's main food- growing region. More heavy rains in Thai- land, Laos and Cambodia have raised the threat of still higher waters in the Mekong River, the ministry spokesman said. The New China News Agency, meanwhile, reported that eastern China's major prov- inces, hundreds of miles northeast of the flood -area, are fighting the longest drought in more than 120 years. [From the Wall Street Journal, Oct. 4, 19781 VIETNAM ASKS FOR FOREIGN AID AFTER Loss OF ONE-FIFTH OF RICE CROP TO HEAVY RAINS (By Barry Kramer) HONG KoNG.-Vietnam appealed for emer- gency international aid following six weeks of torrential rains that it says wiped out about 2.9 million tons of rice, or more than one-fifth of the Communist nation's esti- mated 1978 output. The disastrous crop failure, the worst of three due to natural calamities in as many years, could curtail severely Vietnam's plans for economic recovery and may force its 50 million people, already on food rationing, to tighten their belts another notch. The latest economic setback comes when hundreds of thousands of soldiers have been removed from agricultural and civilrecon- strtiction projects to fight a border war with Vietnam's western neighbor, Cambodia, and to face an increasingly - hostile northern neighbor, China. The crop shortage could force Vietnam into further reliance on the Soviet Union. Hanoi's main source of previ- ous emergency food aid. The relationship with the U.S.S.R. already is the root cause of Vietnam's falling out with its Communist neighbors. Diplomatic observers in Asia have been predicing that Vietnam would launch a mili- tary offensive in a few months against the anti-Vietnamese regime in Cambodia and attempt to replace it with one more friendly to Hanoi. It isn't clear if or how Vietnam's -food crisis might affect that expected con- frontation. FERTILIZER SHORTAGE Vietnam's grain shortage can't be blamed entirely on the weather. The country still Approved For Release 2005/11/23 : CIA-RDP80SO1268A000500040003-2 S 17882 Approved For Release 2005/11/23 : CIA-RDP80SO1268A000500040003-2 CONGRESSIONAL RECORD -SENATE October 9, 1978 sentatives of international organizations on a tour of some flooded areas. Foreign Minis- try officials then told foreign newsmen in Hanoi that the floods, plus insect infestation, had destroyed about 2.9 million tons of rice since Aug. 20, when the first of several ty- phoons and tropical storms hit the North and the South. TARGET OUTPUT The Vietnamese previously targeted out- put for the year at about 14.9 million tons. But before the floods, Western experts had estimated the crop at about 12.9 million tons. If the estimated loss is correct, then actual production could be only 10 million metric tons-22 percent below the earlier Western estimate and several million tons less than is needed to feed Vietnam's popu- lation. Last year, when Vietnam harvested an estimated 12.4 million tons of rice, it still had to import about 1.7 million tons of rice and other grains to help bridge the kap be- tween production and consumption. Even so, rice rations were cut, and other starchy foods such as manioc were substituted (or- rice, Vietnam's staple food. The country isn't likely to get all 2.9 mil- lion tons of grain as gifts or loans from other countries, nor is it likely to purchase any but a small part of that amount. It is likely that the Soviet Union will supply a large portion of whatever relief grain is ob- tained. Meanwhile, Thailand, a would-be supplier of rice to Vietnam, has been hit by the same heavy rains, and large areas of its rice pad- dies are damaged. Laos and Cambodia also will suffer.0 VISIT OF RHODESIA'S PRIME MINISTER IAN SMITH ? Mr. GARN. Mr. President, I would like to take this opportunity to welcome to the United States Prime Minister Ian Smith and the Reverend Ndabaningi Sithole of Rhodesia's transitional govern- ment. It is of utmost significance that the American people have this chance to hear directly from these leaders of Rhodesia's internal settlement regarding the condi- tions in their country and their efforts to bring about majority rule. The State Department's delay in grant- ing visas to Prime Minister Smith and Reverend Sithole was more than simply another manifestation of this adminis- tration's misguided and ill-convicted policy in southern Africa-it was an un- conscionable obstruction to the earnest attempts of these leaders to bring about black majority rule in Rhodesia through peaceful means. This administration has consistently pursued a policy that is weighted heavily in favor of the pro-Marxist guerrilla forces of Joshua Nkomo and Robert Mugabe. Our Government's insistence that these leaders of the Patriotic Front must be part of any overall settlement has provided them with a de facto veto over the efforts of Rhodesia's internal leaders to resolve the issue peacefully. The obstinate refusal of the Carter ad- ministration to support the brave initia- tives of Rhodesia's biracial interim gov- ernment is nothing less than scandalous. Should this administration maintain its opposition to the Rhodesian internal settlement it will severely reduce the prospects for a peaceful transition to democratic rule, and will make a black- against-black civil war all but unavoida- Approved ble--with the potential that such a con- desperate need for a solution to racial war fiict has for further Soviet-Cuban armed in southern Africa and economic disaster intervention in the affairs of Africa. for Zambia and other frontline states. Mr. President, I sincerely hope that The political rationale behind the invita- this visit by Prime Minister Smith and tion for Smith to come here and talk to senators and other American leaders was Reverend Sithole will help the American people gain a greater appreciation for the tremendous difficulties which these leaders face in combating anarchy while working to fundamentally transform the nature of their country's political system. Their endeavors deserve our whole- hearted support and I once again wel- come their arrival here in Washington. Mr. President, in today's Washington Post, Evans and Novak have spelled out the moral bankruptcy of the Carter ad- ministration's African policy, and I ask that their article be printed in the RECORD. Ru:ODESIA POLICY: THE SENATE FILLS A VACUUM (By Rowland Evans and Robert Novak) Contortions in the State Department to delay a visa for Rhodesian Prime Minister Ian Smith and Executive Council member Ndabaningi Sithole symbolized the bank- ruptcy of Carter administration Rhodesia policy, a failure that has created a vacuum now being filled by the Senate. Implicit bankruptcy was declared by the Senate more than three months ago when a resolution to remove economic sanctions from Rhodesia barely failed, 42 to 48. That was followed Sept. 14 by a letter to Smith, signed by 27 senators, inviting him and Sit- hole to Washington. Moderates such as Republican Sens. John Heinz (Pa.) and Bob Packwood (Ore.) and Democratic Sens. Jen- nings Randolph (W. Va.) and Ernest Hollings (S.C. were among the signers. But even such clear warnings from sen- ators determined to arrest the move toward all-out racial war failed to awaken the makers of African policy in the State De- partment. Trapped in a policy that in effect gives veto power over the United States to feuding black states bordering Rhodesia and to feuding guerrilla forces armed and trained by Soviet and Cuban officers, State's African specialists shied from making any gesture to the outlawed Smith. So when Smith's request for a visa arrived, the State Department blocked it. At work was the same detachment from. reality that has dogged the administration's Rhodesian policy ever since former secretary of stat Henry Kissinger's basic plan for ending white FOREIGN INTELLIGENCE SURVEIL- domination of black Rhodesia was adopted LANCE ACT OF 1978--CONFER- by Smith last- March. ENCE REPORT ' s prelim- The pretext for the department inary decision Sept. 30 denying the visa was the U.N. resolution imposing sanctions against the onetime British colony. Smith being a government official in an outlawed nation, his passport has no international standing, but the United States can waive that U.N. ban anytime it wants. For example, both Sithole and Bishop Abel Muzorewa, another member of Rhodesia's Executive Council, got U.S. visas for previous visits here despite U.N. sanctions. The State P-Lartment was singling out Smith for spe- c. - treatment. But the true hypocrisy of the department's preliminary decision to bar Smith on spuri- ous legalistic grounds is exposed by the fact th t Z M n of th "f o f-li " bl k a & o e o e r ne ac grounded on precisely the same hopes that motivated Kaunda: press Smith to find some formula to entice Nkomo into a "share of power" in the Rhodesian government. The leading Senate player in this game is conservative Sen. Jesse Helms (R-N.C.), who is now working through private chan- nels to soften both Smith and Nkomo in the hope of continuing the August contacts started in Zambia-a meeting that lasted several hours and achieved limited objec- tives. But State Department specialists shrank from exposing the shrewd and wily Smith to the U.S. public or risking the political anger of Third World activists in the United Nations and blacks at home. Despite Helms's pleading, Smiths' request for a visa lan- guished. Helms then served notice that he would enter formal objections, under the rule of senatorial courtesy, to the State Depart- ment's entire list of foreign-service promo- tions, and hold up three ambassadorial con- firmations. There were other well-founded threats. Helms, however, is small potatoes in Jim- my Carter's State Department. What broke the visa barricade was not Helms or his Senate colleagues but a compelling editorial in the Washington Post on Oct. 4. By no stretch could The Post be charged with harboring bias toward Smith. Accusing the State Department of playing a "shabby game," the Post asked: "Must the United States be 'purer' than Zambia?" Within hours of that Oct. 4 editorial, the State Department granted the visa, making a mockery of its sanctimonious pretexts for delay. Having breached the visa barricade, the Senate intends to play out its activist role and fill the policy Vacuum. that has been spreading since last March, when Smith launched his "internal solution" pointing to- ward black majority rule. As- perceived by Senators, the United States for too long has bartered away Its prestige and power in the Rhodesian - tragedy in a vain search for a solution satisfying black and other inter- ests, many of which are clearly irrecon- cilable. Mr. KENNEDY. Mr. President, I sub- mit a report of the committee of confer- ence on S. 1566 and ask for its immedi- ate consideration. The PRESIDING OFFICER. The re- port will be stated. The legislative clerk read as follows: The committee of conference on the dis- agreeing votes of the two Houses on the amendments of the House to the bill (S. 1566): to amend title 18, United States Code, to authorize applications for a court order approving applications for a court order approving the use of electronic surveillance to obtain foreign intelligence information, , n having met, after full and free conference, tIN. bo bo ban and rdering admitted Rhodesia, itself Smith ju stt waived twwo the have agreed to recommend and do recom- mo months ago. mend to their respective Houses this report, Smith was invited by Zambian President signed by a majority of the conferees. Kenneth Kaunda for secret negotiations The PRESIDING OFFICER. Without with Joshua Nkomo. The purpose: to find objection, the Senate will proceed to the common ground between the two so that consideration of the conference report. Nkomo, a principal leader of guerrilla forces now attacking Rhodesia, could be brought (The ferenCR a of ed in into the Rhodesian government. V.N. sent- a HOUSe pNaCedinses-.of._the RscQsns time counted for nothing against Zambia's o ) e October 9, 19 r"'Approved Fo ORII, tWqM 2 RVP-89? j1 # 4000500040003-2 Mr. KENNEDY. Mf. President, today, the U.S. Senate writes a final chapter in the ongoing 10-year debate to regulate foreign intelligence electronic surveil- lance. In accepting the conference re- port on S. 1566, "The Foreign Intelli- gence Surveillance Act of 1978," the Sen- ate will at long last place foreign intelli- gence electronic surveillance under the the rule of law. The abuses of recent,his- tory sanctioned in the name of national security highlighted the need for this leg- islation. Working closely with our House colleagues we have fashioned a final product which strikes a careful balance between the needs of national security and the civil liberties and rights of the American people. This legislation benefits from broad bi- partisan support. It passed the Senate 95 to 1. My distinguished colleagues, Sen- ator BAYH, Senator Ti1uRMOND, and Sen- ator GARN have been particularly instru- mental in the development of this legis- lation. Senator BAYH in particular proved to be a valuable ally, processing the bill through the Senate Select Committee on Intelligence with skill and dedication. The bill has been endorsed and sup- Ported not only by this administration, but by the Ford administration as well. Both Attorney General Bell and Attorney General Levi have been most cooperative and helpful in its drafting and process- ing. The legislation constitutes a major step forward in bringing needed safe- guards to the unregulated area of for- eign intelligence surveillance. It is a rec- ognition, long overdue, that the Congress does have a role to play in this area. This legislation would, for the first time, substitute carefully prescribed ac- countability and oversight for the arbi- trariness of the past. The bill would re- quire that most foreign intelligence elec- tronic surveillance in the United States be subject to a judicial warrant require- ment 'based on probable cause. For an American citizen to be surveilled, there must be probable cause that he is an agent of a foreign power, engaging in sabotage, terrorism or clandestine in- telligence activities. It is the courts, not the Executive, that would ultimately rule on whether the surveillance should oc- cur. The bill would require that, before such surveillance could occur, a named executive branch official-such as the Secretary of Defense-certify in writing and under oath that such surveillance is necessary to obtain foreign intelligence information. Mr. President, these statutory provi- sions are the very heart of the legisla- tion. It is true that we have acceded to the House and eliminated the formal warrant requirement when certain for- eign powers are the target of the surveil- lance. I have reluctantly accepted this modification because of the need to re- tain a bipartisan consensus concerning the legislation. Although the modifica- tion exempts certain targets from ' the warrant requirement, it will, neverthe- cy from wiretapping any American citi- zen without first securing a warrant. The legislation also provides the type of accountability which has heretofore not existed. It would for the first time S 17883 expressly limit whatever inherent power poses. Other provisions dealing with the Executive may have to engage in length of surveillance, minimization of electronic surveillance in the United the surveillance and congressional over- States. In so doing, the bill ends a dec- sight are carefully drafted with national ade of debate over the meaning and security interests paramount. scope of the "Inherent power" disclaimer clause -currently found In title M. The bill also provides civil and crim- inal sanctions to those who violate its provisions. It requires that all extran- eous information-unrelated to the pur- poses of the surveillance-be minimized. And it mandates that before any in- formation obtained can be used at a subsequent criminal trial, the trial court must again find that all statutory wire- tap procedures have been met. Most of the concerns expressed by some about various provisions of the bill have been satisfactorily resolved in con- ference. Thus, the Senate provision creating a special court to process the warrant applications has been retained by the conferees; a section has been added from the House bill suspending the warrant procedures for a period of up to 15 days in times of declared war; and new definitions of terrorism have been worked out. Mr, President, some might argue that this legislation is regressive and does not provide sufficient protection for civil liberties: Others might maintain that it goes too far and will inhibit the func- tioning of our intelligence agencies. I disagree on both counts. The bill places strict statutory controls on foreign in- telligence electronic surveillance. The judicial warrant and executive certifi- cation procedures guarantee the type of external and internal controls which I and others have long advocated. To those who maintain that the bill does not go far enough, I would remind them that today there is no statute at all. On the other hand, the legislation will not undercut the effectiveness of our in- telligence agencies. Two Attorneys Gen- eral, two directors of the FBI and two heads of the CIA have testified in sup- port of this legislation. They made con- vincing arguments that without this bill, their agents will continue to operate in a "twilight zone", unsure of what consti- tutes legal surveillance techniques. The needs of our Intelligence agencies in protecting the national security have also been carefully taken into account by .the Congress, the conferees, the adminis- tration and, perhaps most importantly, the intelligence community itself. The legislation has built-in safeguards to pre- serve the flexibility and secrecy of our intelligence effort. For not only did the conferees agree to exempt from the war- rant requirement certain foreign powers, we also agreed to limit the notice re- quirements of what detail must go into the warrant application. Finally, the conferees agreed that the legislation must differ substantially from the provisions of current law authorizing wiretaps in domestic criminal investiga- tions. The bill requires evidence,of crim- inal activity before a warrant may be is- sited in foreign intelligence cases but .established a less stringent . "probable cause" standard of criminality, thus making it easier for the Government to secure a warrant for these limited pur- Mr. President, I believe the time has at last arrived when Congress and the Executive together can fill one of the last remaining loopholes in the laws govern- ing wiretapping and other electronic sur- veillance in the United States. One should view this bill for what it is, a major effort by the Congress, long over- due, to place foreign intelligence elec- tronic surveillance under the rule of law. I urge the adoption of the conference report. Mr. BAYH. Mr. President, I would like to say a word of deep appreciation to the Senator from Massachusetts for the tre- mendous effort that he and the other members of the conference expended in working out this very important piece of legislation. This .is really the first time we have had this kind of joint effort between the Judiciary Committee and the Senate Se- lect Committee on Intelligence. The Sen- ator from Indiana, as the chairman of that latter committee, is indeed grate- ful for the kind of cooperation that has been exhibited. This. bill, for the first time in history, protects the rights of individuals from government activities in the foreign in- telligence area. It is to President Carter's credit that he is the first President in history willing to waive the implied rights of inherent powers which other Presidents have de- manded. I think we have drawn a very careful balance. On one side we have protected the rights of individual citizens from spying and prying. On the other, we have done it in such a way it does not weaken the capacity of our intelligence agencies to provide the kind of information our country needs to protect the Nation from those who would do us harm. . Mr. THURMOND. Mr. President, al- though I rise in support of the confer- ence report on S. 1566, the Foreign In- telligence Surveillance Act of 1978, I must indicate that I signed the confer- ence report with some reluctance. The need for certain safeguards in the use of electronic surveillance by the Government is accepted by this Senator. I do not, however, support procedures that would unduly restrict the ability of the President, under his inherent power, to engage in intelligence-gathering activ- ities against foreign powers or their agents. Mr. President, the procedures under this legislation are designed to permit the President to continue his power to engage in foreign intelligence surveil- liance, but with judicial safeguards in the form of a warrant procedure. Al- though I am agreeable to such proce- dures at this time, I would expect that if these procedures were to become cum- bersome and an obstacle to the ability of our Nation to engage in necessary for- eign intelligence gathering, the Congress would Immediately reconsider this leg- islation and. make changes in order to Approved For Release 2005/11/23 : CIA-RDP80SO1268A000500040003-2 S 17884 Approved For Release 2005/11/23 : CIA-RDP80SO1268A000500040003-2 CONGRESSIONAL RECORD -SENATE October 9, 1978 avoid such barriers to effective foreign intelligence-gathering activities. Finally, I am supporting this legisla- tion because, without a clear expression from Congress in this area, especially when the case law is somewhat divided, there may be a chilling effect on the ex- ecutive branch to engage in foreign intel- ligence gathering activities. I would not want to see that happen, Mr. President, so with the reservations that I have ex- pressed, I shall agree to the adoption of the conference report on S. 1566 now before the Senate. The PRESIDING OFFICER. The ques- tion is on agreeing to the conference report. The conference report was agreed to. Mr. KENNEDY. I move to reconsider the vote by which the conference report was agreed to. Mr. CURTIS. I move to lay that motion on the table. The motion to lay on the table was agreed to. . THE CALENDAR Mr. ROBERT C. BYRD. Mr. President, I ask unanimous consent that the Senate proceed to the consideration of Calendar Orders Nos. 1190, 1194, 1210, 1211, 1212, and 1213. The PRESIDING OFFICER. Is there objection? Mr. STEVENS. There is no objection. The PRESIDING OFFICER. Without objection, it is so ordered. COMPTROLLER GENERAL ANNUITY ADJUSTMENT ACT OF 1978 The Senate proceeded to consider the bill (S. 3412) to provide for cost-of-living adjustments in the annuity of a retired Comptroller General, and for other pur- poses, which had been reported from the Committee on Governmental Affairs with an amendment on page 6, beginning with line 6, strike through and including line 8, so as to make the bill read: Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Comptroller Gen- eral Annuity Adjustment Act of 1978". SEC. 2. Section 319 of the Budget and Ac- counting Act, 1921 (31 U.S.C. 43b) is amended- (1) by striking out "3" wherever it appears In subsections (b) and (c) and inserting ,..E 1/2 "; (2) by striking out in subsection (e) (2) beginning with "one-half" through the word "lesser" and inserting the following: "(A) $1,548, or (B) $4,644 divided by the number of children, whichever is lesser"; (3) by inserting "(A)" immediately after "equal to" in subsection (e) (3) and by strik- ing out in such subsection beginning with "survived," through the word "year" and inserting "survived, divided by the number of children, or (B) $1,860, or (C) $5,580, divided by the number of children, which- ever is the lesser"; and (4) by striking out "the last five years of such service" in subsection (n) and insert- ing "the three years of service in which his annual salary was greatest", and by strik- ing out "371/2" in such subsection and in- serting "40". SEC. 3. The Budget and Accounting Act, 1921, is amended by adding after section 319 the following new section: "SEC. 320. (a) Except as provided in sub- section (b), the annuities authorized by sec- tions 303 and 319 of this. Act shall be increased as follows: "(1) The Comptroller General shall- "(A) on January It of each year, or within a reasonable time thereafter, determine the per centum change in the Consumer Price Index published for December of the preced- ing year over the Consumer Price Index pub- lished for June of the preceding year, and "(B) on July 1 of each year, or within a reasonable time thereafter, determine the per centum change in the Consumer Price Index published for June of such year over the Consumer Price Index published for Decem- ber of the preceding year. "(2) If in any year the per centum change determined under either paragraph (1) (A) or (1) (B) indicates a rise in the Consumer Price Index, then- "(A) effective March 1 of such year, in the case of an increase under paragraph (1) (A), each annuity payable under sections 303 and 319 of this Act commencing not later than such March 1 shall be increased by the per centum change computed under such para- graph, adjusted to the nearest one-tenth of 1 per centum, or "(B) effective September 1 of such year, in the case of an increase under paragraph (1) (B), each annuity payable under sections 303 and 319 of this Act commencing not later than such September 1 shall be increased by the per centum change computed under such paragraph, adjusted to the nearest one- tenth of 1 per centum. "(3) The per centum increase authorized by the Comptroller General under this sec- tion shall not exceed the per centum increase as authorized from time to time by the Civil Service Commission under section 8340(b) of title 5, United States Code. "(b) The annuity authorized by section 303 of this Act shall not, by reason of the application of subsection (a), exceed the an- nual rate of compensation of the Comptrol- ler General.". SEC. 4. (a) The second paragraph of section 303 of the Budget and Accounting Act, 1921 (31 U.S.C. 43) is amended by inserting be- tween the third and fourth sentences the following new sentence: "There shall be de- ducted from the salary of any person ap- pointed to the Office of the Comptroller Gen- eral after the date of enactment of this sen- tence as a contribution to the annuity au- thorized by this paragraph (1) a sum equal to 31/2 per centum of his salary, in the case of a Comptroller General who has elected survivor benefits under section 319, or (2) a sum equal to 8 per centum of his salary, in the case of a Comptroller General who has not elected such survivor benefits.". (b) The third paragraph of such section is amended by- (1) inserting after "that Act," in the first sentence "and no deduction from his salary shall be made under the preceding para- graph,"; and (2) adding at the end thereof the follow- ing new sentence: "Any person who is ap- pointed to the Office of Comptroller Gen- eral after the date of enactment of this sentence and who makes such an election under this paragraph shall deposit with the General Accounting Office for covering into the general fund of the Treasury as miscel- laneous receipts as a contribution to the an- nuity authorized under the preceding para- graph (1) a sum equal to 31/2 per centum, in the case of a Comptroller General who has elected survivor benefits under section 319, or (2) 8 per centum, in the case of a Comp- troller General who has not elected such benefits, of the salary received by him as Comptroller General prior to the date cur- rent deductions begin from his salary, plus interest thereon at the rate of 3 per centum per annum compounded on December 31 of each year.". (c) Such section is amended by adding at the end thereof the following new para- graph: "Any Comptroller General. who is sepa- rated from office prior to becoming eligible to receive an annuity under the second para- graph shall be entitled to a lump-sum re- fund of the total amount deducted from his salary in accordance with the provisions of such paragraph or deposited by him as a contribution to his annuity in accordance with the provisions of the preceding para- graph, plus interest thereon at the rate of 3 per centum per annum compounded on December 31 of each year. The lump-sum refund authorized by this paragraph shall be paid to the Comptroller General or to his survivors in the order of precedence of such survivors established in section 319(j) for surivor benefits.". The amendment was agreed to. . The bill was ordered to be engrossed for a third reading, read the third time, and passed. Mr. ROBERT C. BYRD. Mr. President, I move to reconsider the vote by which the bill was passed. Mr. STEVENS. I move to lay that mo- tion on the table. - The motion to lay on the table was agreed to. Mr. ROBERT C. BYRD. Mr. Presi- dent, I ask unanimous consent to have printed in the RECORD an excerpt from the report (No. 95-1267), explaining the purposes of the measure. There being no objection, the excerpt was ordered to be printed in the RECORD, as follows: SUMMARY AND PURPOSE S. 3412 amends the law providing for re- tirement of the Comptroller General of the United States to enable retired Comptrollers General and their survivors to obtain cost- of-living adjustments to their annuities. BACKGROUND AND LEGISLATIVE HISTORY The Budget and Accounting Act of 1921, as amended in 1953, authorizes a retirement annuity for the Comptroller General. He is entitled to the salary payable for his office at the time of retirement (1) upon comple- tion of his single 15-year term, (2) upon retirement on permanent disability after 10 years of service, or (3) after 10 years of service if he has attained the mandatory retirement age of 70. He can retire at half pay if permanently disabled after less than 10 years of service. Benefits for survivors of retired Comp- trollers General were enacted in 1959. These benefits generally followed those provided in 1956 for survivors of Federal judges. Sur- viving spouses of retired judges and Comp- trollers General received a maximum of 371/2 percent of the average salary for the last 5 years of creditable service. Benefits for de- pendent children were also provided. The 94th Congress updated benefits for survivors of Federal judges (Public Law 94- 554). Cost-of-living allowances were pro- vided. The ceiling on a spouse's annuity was increased to 40 percent of a deceased judge's highest 3-year average salary. The annuity for dependent children of deceased judges was increased. Judges' contributions toward survivor benefits were increased from 3 to 4y2 percent of their salaries. With passage of Public Law 94-554 it appears that all Fed- eral employees, except for the Comptroller General, have retirement and survivor bene- fits adjusted by cost-of-living increases. - Legislation providing cost-of-living in- creases for retired Comptrollers General and their survivors was transmitted this year by the General Accounting Office to the Senate Committee on Governmental Affairs and the House Committee on Government Opera- Approved For Release 2005/11/23 : CIA-RDP80S012'68A000500040003-2